Wal-Mart wants to get into subscription shipping services, and it's ready to undercut Amazon to do it.

The Information reports Wal-Mart's service, codenamed "Tahoe," would offer products for delivery in three days or less for an annual fee of $50.

Amazon's Prime service goes for $99 a year, but it gets customers faster two-day shipping and a wide array of streaming media and other perks.

A spokesman for Wal-Mart told Bloomberg the service would start with an invite-only testing phase in a select number of markets, none of which have been announced.

It's a toe in the water, in other words. But to hear the analysts tell it, Wal-Mart needs to make more permanent changes to stay relevant. One who talked to CNBC pointed to the hottest products of 2014: household goods. (Video via Walmart)

"The fastest-growing category in terms of online growth, was consumer product goods. So it's Bounty, it’s Cheerios, it's Tide. That’s the heart of Wal-Mart, and they need to compete," Chris Horvers said.

Tahoe is the latest in a series of attempts to better compete with the rising popularity of e-commerce. See Wal-Mart Pickup, where customers in certain markets can send online orders for groceries and pick them up at a later date.

And Wal-Mart's website, which it overhauled last year with better search and mobile support.

But it's still playing catch-up. Amazon still has more than double the online pull, boasting 168 million monthly unique visits to its websites in the third quarter of 2014 to Walmart’s 73 million.